There have been ongoing rumors about OpenAI’s hardware ambitions, including plans to release a pair of AI-powered earbuds. Now, a new note from industry analyst Ming-Chi Kuo suggests the company could also be working on a smartphone in partnership with MediaTek, Qualcomm, and Luxshare.

 

Kuo—known for his track record with Apple-related predictions—claims OpenAI may collaborate with MediaTek and Qualcomm to develop a custom smartphone chip, while Luxshare would handle co-design and manufacturing.

 

According to the report, the device could move away from traditional apps, instead relying on AI agents to handle tasks. Today, platforms like Apple and Google tightly control app distribution and system access, limiting what software can do. By building its own hardware and ecosystem, OpenAI could bypass those restrictions and integrate AI more deeply across the device. With ChatGPT approaching a billion weekly users, a dedicated hardware product could also help the company expand its consumer reach.

 

This vision isn’t unique to OpenAI. Some developers—especially those behind “vibe coding” tools—are increasingly imagining a future without apps. At SXSW, Nothing CEO Carl Pei even suggested that apps could eventually disappear altogether.

 

Kuo also noted that the proposed smartphone would be designed to continuously understand user context. Owning the hardware would allow OpenAI to access richer behavioral data than it could through a standalone app. The company is expected to use a hybrid approach, combining smaller on-device models with more powerful cloud-based systems to handle different types of tasks.

 

The analyst expects key specifications and supplier decisions to be finalized by late this year or early 2027, with mass production potentially beginning in 2028.

 

Earlier this year, OpenAI’s Chief Global Affairs Officer Chris Lehane said the company is on track to unveil its first hardware product in the second half of 2026, with several reports pointing to uniquely designed earbuds as the likely debut device.

 

OpenAI has not commented on these developments so far.